Market Outlook

Support comes in at the 23894, 23667, 23400, 23111, 22769, 22526, 22300, 22125, 21834, 21500, 21020, 20850, 20500, 20222, 19992, 19875, 19667, 19524, 19250, 18888, 18600, 18442, 18200, 18095, 17948, 17792, 17613, 17430, 17226, 17055, 16900, 16700, 16359, 16203 while resistance comes in at 24200, 24492, 24792, 25446, 25100, 25800, 26400.

The Nifty remains under pressure mainly due to a meltdown in the Bank Nifty while the overall situation hasn’t improved much and the negative overhang remains omnipresent indicating possible further weakness. Maximum call open interest comes in at 24500 followed by 24000 while maximum put open interest comes in at 22500 followed by 23000 indicating a slightly large trading range (not very surprising considering the fact that we are in a volatile third week of the current series) compared to the last week but the situation remains fluid with movements expected on either side. Nifty has seen some addition in open interest during the week to end at 01.35 cr (rounded off) and has seen a decrease of nearly 00.72% (rounded off) on the last trading session of the week; the Bank Nifty has seen some open interest being added during the week to end at 25.65 lakh (rounded off) compared to the last week; has actually seen notable open interest (06.00%) being higher on the last trading session of the week. The Vix has spent almost the entire week in a rangebound movement (with a mixed bias) above the 14.00 level (in terms of closing) except that it ended at 14.92 (higher from an intra week low of 13.54) which has resulted in the Nifty generally weak during the week. The Nifty continues its lower top, lower bottom scenario and though the impact has been exacerbated due to the Bank Nifty, a test of the 23263 is possible, a close below which would mean more pain. Stability needs to be seen before venturing out, a wait and watch approach is suggested. Support comes in at the 23894, 23667, 23400, 23111, 22769, 22526, 22300, 22125, 21834, 21500, 21020, 20850, 20500, 20222, 19992, 19875, 19667, 19524, 19250, 18888, 18600, 18442, 18200, 18095, 17948, 17792, 17613, 17430, 17226, 17055, 16900, 16700, 16359, 16203 while resistance comes in at 24200, 24492, 24792, 25446, 25100, 25800, 26400.